Available for:
E8 Classic
E8 Track
The Initial Balance Loss represents the maximum total loss your account can incur relative to its initial starting balance or scaled balance (After payout). A permanent violation will occur if your account's equity or balance falls below the limit at any point.
Example 1: $200,000 Account with 8% Initial Balance Loss
Initial Balance: $200,000
Initial Balance Loss: 8% of $200,000 = $16,000
Loss Level: $200,000 - $16,000 = $184,000
Violation: If your account's equity or balance drops below $184,000 at any point.
Example 2: $235,000 Account after scaling with 8% Initial Balance Loss
Initial Balance (After scaling): $235,000
Initial Balance Loss: 8% of $235,000 = $18,800
Loss Level: $235,000 - $18,800 = $216,200
Violation: If your account's equity or balance drops below $216,200 at any point.
Example with account loss analysis (Data taken from Day 1)
To better understand your limits, you can always rely on your account loss analysis, which is located in the top right corner of your dashboard.
Please note that if your account equity or balance reaches/falls below the loss level, your account will be permanently closed for breaching the Initial Balance Loss rule.
Bear in mind that after the account breaches your loss level, the system will enforce closing the position automaticly, which might take a while. This might result in closing your balance above the loss level; however, closing your balance above the loss level after you breach the Loss level won't prevent the account from being violated and permanently closed.
The percentage amount (8% in this example) can be customized at the checkout when you are creating the order.